Rovi has agreed to acquire DVR maker TiVo in a deal worth $1.1 billion. The acquisition, which was rumored to be close to completion in March, will be part cash, part shares -- only $277 million will actually change hands, with the rest of the figure being paid out in stock of a new company that will own both Rovi and TiVo. Subject to the usual regulatory approvals, the purchase will complete in Q3 2016, after which the joint entity will be known as TiVo.
While you're aware of TiVo, you probably don't know what Rovi is or does. The company started life as MacroVision, and owns thousands of patents relating to DRM and program guides. More recently, it's mostly been in the news for wielding those patents liberally in various lawsuits, including a case against Netflix that it eventually lost. TiVo also has lots of IP relating to its DVR tech. With the acquisition, the new TiVo will have over 6,000 patents, and some far-reaching claims to royalties in the DVR market.